| It is very unfortunate that about half of Southern | | | | suspending payments. |
| Californian home owners are having issues paying their | | | | It's not all doom and gloom there are ways that will |
| mortgages. Some homeowners are having to adjust | | | | enable you to avoid foreclosure and keep that roof |
| to a spike in the adjustable-rate and they cannot | | | | over your head. If you are taking some time off like a |
| handle it. For many that's a 20 percent to 30 percent | | | | leave of absence, unpaid vacation or you lost your job |
| increase in their home loan repayments! Insane, isn't it, | | | | then contact your lender and negotiate a lower |
| how many of us could really manage an increase of | | | | payment. Explain to them what the situation is and see |
| that size without any financial problems? The real | | | | if you can be granted extra time to pay. Better yet |
| problem here is now the loans were sold, most if not | | | | ask for a temporary suspension of payment, a |
| all loan offices fail to tell you what will happen when | | | | payment reduction, or a repayment plan. The important |
| the "fixed rate period" comes to an end all they really | | | | thing here is that you contact your lender as soon as |
| care about is their commission on your loan. | | | | possible. If you wait to long they are less likely to |
| In Los Angeles County alone the rise in foreclosures | | | | negotiate. Instead of foreclosing ask if your lender can |
| went up 5% and thats been the third spike in the past | | | | extend the loan and lower the payments. Don't jump |
| three months. In Orange County, the rate rose to 9%, | | | | from the frying pan into the fire by taking out a second |
| in Riverside it rose a very dramatic 52%. The scary | | | | mortgage you can't afford, all that will do is delay the |
| thing is that these foreclosure rates are predicted by | | | | final outcome and put you deeper in debt. For those of |
| many to rise even more. | | | | you with bad credit be prepared for high interest rates. |
| Once your lender starts the foreclosure process it | | | | Seek credit counseling there are a few free |
| becomes public information. Any company can then | | | | resources. The federal housing department can be |
| approach the homeowners. How do you know what | | | | reached at (800) 569-4287 and they can recommend |
| companies to use. This is a very stressful time so here | | | | some good agencies. There is a really good nonprofit |
| are some tips that will help you. Don't pay any kind of | | | | organization that will make recommendations that |
| initial fee, if a company asks for a fee upfront that's | | | | could help you called Homeonwnership Preservation |
| illegal. Before signing anything or handing over any | | | | Foundation. They can be reached at (888) 995-HOPE. |
| money please check with the Better Business Bureau | | | | There is another nonprofit called ByDesign Financial |
| (visit to see if there are any complaints against that | | | | Solutions and they can be reached at (800) 750-2227. |
| company. You should never have to pay a company | | | | When calling either one of these, you should mention a |
| for steps that you can take yourself, like postponing or | | | | default notice. |